New iPhone demand expected to help Apple sales & boost investor sentiment around company shares in Q3

After a period of sluggishness earlier in the year, Apple (NASDAQ:AAPL) shares hit fresh highs in 2021. When we look back at March of 2020, Apple shares dropped, and since then investors have received a total return of almost 150%.

There is clear evidence that shows high demand for the flagship smartphones produced by the California-based tech giant. Apple has reportedly requested suppliers to manufacture as many as 90 million next-gen iPhones this year, which is a significant rise over the company’s shipments a year back.

Overall, in recent times the business has managed to consistently produce about 75 million units for the introduction of a new gadget. A report predicts the firm is expected to carry out an iPhone launch soon, with the introduction of COVID-19 vaccines contributing to rising demand. One of the features Apple will provide for the second time with its next generation of iPhones will be the inclusion of 5G technology, a major selling point for enticing customers to upgrade.

A favourable result would further boost positive investor sentiment around Apple, whose recent growth has been supported by the anticipation of a new “super cycle” in which millions of existing consumers will replace old devices.

It is imperative that Apple’s innovation engine remains active to ensure the company’s revenue growth. To that end, the company must continue to release new devices and system updates. It is said that the business has several interesting developments in the pipeline.

The new MacBook Pro computers that are in development will include proprietary Apple processors, an upgraded display for the Apple Watch, a new design for the iPad mini, and an entry-level iPad.

When it comes to share price performance post-earnings, considering Apple’s previous outperformance, it seems that investors may be sellers going into the September introduction of the iPhone 13.

The estimate analysts have come up with for the Apple share price is $166 a share, which represents an 11% increase from where the share price is at the moment.

Our verdict:

In terms of the near future, analysts say that high demand for new iPhone models and other improvements that Apple has planned for its in-demand goods may continue to lift the company’s financial results. Apple shares have the potential to increase in price when the business surpasses expectations, particularly when forecasts are cautious to begin with.

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By Fool Co, August 16, 2022
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